Lecture 5

Organizational structure: the arrangement of positions in an organization and the

authority and responsibility relationships among them. Strong ties between the concept of power and the structure of organizations.

Traditional organizations: formally defined roles for their members, are very rule

driven, and are stable and resistant to change.“mechanistic” or “bureaucratic” structures. Bureaucracy is characterized by standardization.

Chain of command - the number of authority levels in an organization.

Span of control - the number of workers who report to a single supervisor.

Nontraditional organizations: characterized by less-formalized work roles and

procedures. As a result, they tend to be rather flexible and adaptable, without the rigid

status hierarchy characteristic of more traditional structures.“organic” structures.

Team organization - a nontraditional organizational structure consisting of a team of members organized around a particular project or product.

Matrix structure combines two forms of departmentalization—functional and product. They tend to be best suited for projects and products that require creativity and innovation.

Small power distance: inequality of roles, decentralization, narrow salary range between the top and the bottom, managers rely on their own experience and on subordinates, subordinates are to be consulted, the ideal boss is resourceful democrat, manual work has the same status as office work.

Large power distance: inequality between levels, centralization, wide salary range between the top and the bottom, managers rely on superiors and on formal rules, subordinates expect to be told what to do, the ideal boss is a benevolent autocrat, white-collar jobs are valued more than blue-collar jobs.

Organizational culture: a system of shared meaning held by members that distinguishes the organization from other organizations.

Organizational culture is concerned with: employees’ perceptions of the characteristics of the culture, not whether they like them.

Schien’s model of organizational culture is a pyramid with basic assumptions at the base, followed by beliefs, values, and attitudes, and ends with artifacts.

Dominant culture: expresses the core values a majority of members share and that give the organization distinct personality.

Subcultures: tend to develop in large organizations to reflect common problems, situations, or experiences that members face.

Competing values culture mode; by Cameron & Quinn: four competing traits clan, hierarchy, adhocracy, and market culture. 

Hierarchy culture: formalized and structured workplace, procedures direct what people do, smooth functioning is crucial, formal rules and policies. Medicine, nuclear power, military government, banking and insurance, transportation.

Clan culture: friendly working environment, leaders as mentors, loyalty and tradition, needs of clients and caring for people, teamwork. Health care, education.

Adhocracy culture: dynamic and creative working environment, risk-taking, innovation, individual initiative, and freedom. Technical start-ups, disruptive services, technology-driven industries.

Market culture: result-based workplace, people are competitive and focused on goals, with an emphasis on winning, reputation and success are the most important. Accountancy, sales and marketing, services, manufacturing.